# TDS on Winnings from Horse Races - Section 194BB

## Trigger

Any person (being a bookmaker or licensed person under any State law for horse racing) paying winnings from horse races to any payee.

## Threshold

TDS applies only when winnings from horse races exceed ₹10,000 in respect of a single transaction.

## Rate of TDS

30% flat.

## No Deductions Allowed

The payee cannot claim:

Any expenditure or allowance against such income
Deductions under Chapter VI-A from this income
Basic exemption limit set-off against horse race winnings

## Related Provisions (for context)

Section 194B: Winnings from lotteries, crossword puzzles, card games — also @30%, threshold ₹10,000 (aggregate)
Section 194BA: Winnings from online games — @30% on net winnings, no threshold

⚠️ Common exam mistakes

Adding surcharge/health & education cess at TDS stage — they are not added under 194BB.
Confusing 194BB threshold (single transaction) with 194B threshold (aggregate during the year).
Allowing deductions/exemption limit against horse race winnings — none are allowed.

Bare-Act text 194BB · Income-tax Act, 1961 · click to expand

Under section 194BB, tax is to be deducted at source, if the winnings from horse races exceed ₹10,000 in respect of a single transaction. The rate of deduction of tax at source is 30%.

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Section 194BB - TDS on Winnings from Horse Races

Worked example

⚠️ Common exam mistakes